In order to secure feed for its dairy herd and poultry businesses, Saudi Arabia's Almarai Co has acquired Fondomonte S.A, it said on Wednesday (Dec 21).

"The transaction value is SAR312 million (US$83.2 million) and is financed from a combination of operational cash flows and Islamic banking facilities," Almarai said in a bourse statement.

Fondomonte S.A. has three farms totalling 12,306 hectares which focus on the production of corn and soy, the statement said.

In June Almarai said it plans to invest SAR4 billion (US$1.1 billion) in the poultry sector.

Earlier this month Almarai said it plans to increase its capital by 73.9% to SAR4 billion (US$1.1 billion) from SAR2.3 billion (US$613 million) through the distribution of one bonus share for each 1.739 shares.